Summary
In recent years co-operative ventures between countries have proliferated. The financing of this activity by membership contributions extends the problems of tax incidence to the international level. The authors analyse the Netherlands' financial contributions to several international organizations in an attempt to specify criteria on which these payments are based. They conclude that the conventional normative approaches to intergovernmental tax. arrangements are of limited relevance and argue for a closer scrutiny of the procedures by which cost-sharing schedules are determined. To this end they specify and test a simple bargaining model explaining the variation in cost-sharing bases between organizations.
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The major part of this paper was completed when the authors were members of the Public Sector Studies Programme at the University of York. They gratefully acknowledge the financial assistance received from the S.S.R.C.
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Diamond, J., Dodsworth, J.R. Normative and positive theories of international cost sharing: The case of the Netherlands. De Economist 124, 403–421 (1976). https://doi.org/10.1007/BF01675918
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DOI: https://doi.org/10.1007/BF01675918